Fifteen Chinese Cities or Provinces Update Monthly Minimum Wages in 2018

Figures from China’s National Bureau of Statistics (NBS) and Ministry of Human Resource and Social Security show that fifteen provinces or cities updated their monthly minimum wage standard in 2018. This includes five that have increased by more than CNY 200, which are:
1. Guangdong
2. Hainan
3. Sichuan
4. Guangxi
5. Xizang

These updates mean, by December 2018, six of 31 territories in China will have a minimum wage standard greater than CNY 2000. These are:
1. Shanghai
2. Beijing
3. Guangdong
4. Tianjin
5. Suzhou
6. Zhejiang

In addition, Chongqing formally implemented its new minimum wage standard on January 1, 2019. This provides a standard of CNY 1800 per month for A-Class and CNY 1700 per month for B-Class standard – respective increases of over CNY 300.

The legal minimum wage is the lowest amount it is permissible for an employer to pay a worker. According to “Provisions on Minimum Wage”, the minimum wage should be a monthly minimum wage and an hourly minimum wage. The rules also state it should be updated at least every two years.

Overall the updates show that the area with the highest increase was Guangxi and lowest was Anhui. Guangxi has increased by 20%, and its A-Class standard has been raised by CNY 280. This is probably due to higher living coats, social insurance, etc.

The inclusion or otherwise of social insurance premiums and the housing public accumulation fund in the minimum wage is unclear in legislation. Therefore, different regions take different approaches. For example, Shanghai does not include them; Jiangxi only includes social insurance premiums; and Yunnan includes both.

Stakeholders should also be aware that at least 22 provinces and cities have issued wage guidelines for enterprise to help business establish and perfect a normal wage increasing mechanism.

For detailed information on the different regions, cities and towns, please refer to: SGS China’s Minimum Wage Map

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For further information contact:

Olina Cai
Marketing Executive
Supply Chain Assessments & Solutions
Tel: +86 (0)755-2532 8137
Email: crs.media@sgs.com
Website: www.sgs.com/sas

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This release was published on openPR.